With globalization and the expansion of e-commerce, competition has gone from being regional to global, increasing customer acquisition costs abruptly.
The best way to do that is by increasing the lifetime value of their user base and harnessing loyalty. This is often done through a tier-based rewards system: the more frequently a customer purchases something or interacts with a given brand, the more benefits they get, and in some cases, they can “level-up” to a certain kind of VIP status.
By integrating NFTs to their loyalty programs, brands can go deeper and create deeper experiences being a step ahead of what the people will request in the near future.
Benefits of NFT as a Loyalty Rewards
The problem with traditional loyalty programs today is that many of them are restricted to redeeming points in exchange for brand-specific rewards. Most rewards have expiration dates, little flexibility, and cannot be transferred. On top of that, some loyalty programs out there still rely on physical cards, and can’t seamlessly integrate into the digital world.
Before thinking in the integration with NFTs, you should always consider what traditional loyalty systems already exist to transfer the system that creates loyalty to the form of NFT.
Basic Formula: You give a lot to the brand so they compensate you a little.
SHOPX has a perfect proposal to integrate NFTs into your loyalty program.
In this example you can see the partnership of The Mag Park with SHOPX.
Caption: Special shout-out to Arthur Parkhouse for the Information